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Project report on launching a new product in rural area

Let us now understand the different promotion strategies involved in rural marketing. Personal Selling It is a process of face to face interaction between the salesperson and the prospective customer. Through a proper training and guide, a salesman can be a valuable medium between the marketer and the prospective customer.

  • The Refresh is a fresh juice product;
  • In controlling process we compare our product with our standards Correcting:

A good salesperson is the one who has thorough knowledge about the product he is about to sell and tries to strike a common point of link between the product and the customer needs. Personal Selling in Rural Region Most of the project report on launching a new product in rural area think personal selling is not feasible in rural areas because of various reasons ranging from scattered population to a large number of villages to be covered.

Though still not a prevalent practice adopted by the national level marketers, personal selling is widely done by the local manufacturers of utensils, garments, edible good etc. As the population of rural region is scattered, it becomes a lot more important for the salesperson to have sufficient knowledge about rural area which he is supposed to cover. It acts as a major communication point in converting prospective customer into an actual one. Thus, if the salesperson belongs to the particular rural district, in that case his job not only becomes easy but also chances of success in achieving his sales target increase strongly.

Rural people are always skeptical in nature about the new product and strongly hesitate to purchase it due to lack of faith. Here a salesperson needs to remove the doubts of the prospective customer and make him believe to purchase the product. But being too pushy in his approach can ruin the chances of sale of the product.

Also, dissemination of information concerning the rural folk is possible only through effective public relations. Educating rural people about the importance of administering polio drops to children, vaccination to mother and child, sanitation, hygiene etc. According to marketers, sales promotion includes those sales activities that supplement both personal selling and advertising, and coordinating. It also involves making the advertisements effective, such as displays, shows and exhibitions and demonstrations.

Marketers started providing various incentives, pop material etc. To increase product sales ratio push-up sales promotion is the important part of promotion efforts taken up by the companies.

  • The Refresh geographic target area is Rahim Yar Khan;
  • Customers come through schemes like Buy 1-Get 1 Free, discounts, exchange offers etc;
  • Exchange Premiums It is quite similar to the above strategy, under which instead of refund of money a new product is given to consumers on showing of proof of previous purchase.

In case of rural marketing the companies also follow push-up sales promotion strategies. Customers come through schemes like Buy 1-Get 1 Free, discounts, exchange offers etc. These schemes attract customers towards the product and the customers end up purchasing the products.

When the company decides to enter into new market and launch the new product, in such cases free distribution of samples is an effective pull-up sales promotional activity. As compared to urban consumers, the tendency to try the new product is low in case of rural consumers because they have lack of faith about the new products.

Rural Marketing - Promotion Strategies

Free samples encourage trial purchase among consumers. With-pack Premiums Here, a free product is given either inside the pack or outside the pack. This attracts the rural customers to purchase the product. This is successful only when the free product is either complementary or useful to the consumers. For example, a free toothbrush that comes complementary with toothpaste. Price-off Premiums This refers to the cut-price technique for a product. This is useful not only in case of FMCGs but also in case of consumer durables if the discount is appropriate.

  1. Survey Survey for the future.
  2. The price should be set at moderate level in order to attract a large number of buyers and to gain large market share.
  3. The price is very much compatible and the offer is substantial enough to attract a large percentage of market in very quick time.
  4. The marketing strategy is based on positioning of the product in the mind of consumers.

Money Refund Premiums It refers to the price of the product, which is partially refunded to the consumers on the repurchase of same product by showing of proof of previous purchase like cash memo, empty wrapper, poly packs etc. Exchange Premiums It is quite similar to the above strategy, under which instead of refund of money a new product is given to consumers on showing of proof of previous purchase. Interactive Games Innovative fun-filled games generate interest among the rural crowd.

The winner of the game can be rewarded with the product of the company which sponsored such games. Sometimes such games ensure high customer involvement and also increase the interaction between the marketer and target customers. For the rural people, they are the source of entertainment and a good opportunity to launch their products for the marketers in the rural market.

It has mass appeal as several villagers come to fairs. Customers may be attracted by using the mass media like organizing folk songs competition, folk dances, magic shows, puppetry shows, street theatre, acrobatic skills, juggler, etc. This pulls the crowd towards buying the product. Village Haats Haats are the weekly markets from where rural people buy the items of daily necessities, garments, farm inputs etc.

They are the source for rural people and a place of social gettogether. The existence of haats can be traced back to ancient times — the times of Chandragupta Maurya. Haats provide to the marketers an opportunity to display their products. Consumers are ready to try the product by overcoming all inhibitions and can get the touch and feel of the product and this will further generate sales as most of the people come to the haats with an intention to buy.

In a trade mela, one can find variety of products. Melas are held usually in festive seasons like Dussehra, Diwali, Holi, Eid etc.

During melas, marketers get to interact with a large number of consumers and encourage for trial purchase. These melas help the marketers target large audience. Mandis Mandis are the place for agricultural produce and inputs. Durable are tractors, pump sets, threshers etc. Non-durable includes seeds, fertilizers etc.

Pricing Strategy In rural India, financing at zero interest can persuade customers to purchase consumer durables like television, washing machine etc. Because consumers often worry less about the interest rate of a loan and more about whether they can afford the monthly payment or not.

  1. The price should be set at moderate level in order to attract a large number of buyers and to gain large market share. In controlling process we compare our product with our standards Correcting.
  2. It provides energy and keeps fresh when people feel weak or tired from doing work.
  3. So that I can develop it accordingly.
  4. In the very beginning of the report I explained the vision and mission statement of the company and I have further carried out.

In this pricing strategy instead of reducing the price of product, companies charge lesser or zero interest. Even in case where the prices of products are kept high by the marketers, positioning the product as value for money and relating the high price with the quality of product that can justify the price of the product and also can push-up for sale.

  • Supplying product to all areas of Rahim Yar Khan, and have further divided the city into five zones;
  • In rural India, this pricing strategy is still being practised as people there are still not much aware about the tricks that works behind this kind of pricing;
  • Pricing strategies usually changes as the product passes through its life cycle.

Pricing is thus, determined not only by the level of income of the target consumers but also by the surplus income that a consumer has. In rural India, this pricing strategy is still being practised as people there are still not much aware about the tricks that works behind this kind of pricing. This strategy works mainly for two purposes. Firstly, customer may consider the product as affordable for him, if he perceives that it is priced within his budget. For example, a product priced at Rs.

Secondly, customers feel delighted if they get back some rupees in return. After two failed joint ventures and the subsequent de-licensing of the consumer electronics industry, LG Electronics India Private Ltd. Under such tough conditions LG emerged as the market leader in washing machines, air conditioners and microwave ovens.

The company then set its eyes on the untapped rural markets to grow further.